User Account

All Pages

Record the interest at the end of the first year

Assignment Help Accounting Basics
Reference no: EM132084969

Question - On January 1, 2014, Company makes the two following acquisitions.

1. Purchases land having a fair value of $216,000 by issuing a 4-year, zero-interest-bearing promissory note in the face amount of $339,880.

2. Purchases equipment by issuing a 7%, 9-year promissory note having a maturity value of $263,000. (Interest payable annually).

The company has to pay 12% interest for funds from its bank.

(a) Record the two journal entries that should be recorded by Ellen Greene Company for the two purchases on January 1, 2014.

(b) Record the interest at the end of the first year on both notes using the effective-interest method.

Reference no: EM132084969

Questions Cloud

Give example of enhancer of great groups : From this week's assigned readings from Ledlow & Coppola (2014), list a 'killer' and give an example of an 'enhancer' of great groups.
Change the permissions on certain files : Why would you want or need to change the permissions on certain files or directories that you have created?
Difference between a pretest and a posttest loop : What is the difference between a pretest and a posttest loop. Describe when and why you would you use each. Give original pseudocode and original C# examples.
Loop to populate an array : 1) How could I make a short program in C that uses a for loop to populate an array. The array needs to store up to 10 integers.
Record the interest at the end of the first year : The company has to pay 12% interest for funds from its bank. Record the interest at the end of the first year on both notes using the effective-interest method
Founder of the eat more oreos foundation : The reader that Mr. Johnson is the founder of the Eat More Oreos Foundation.
Organization to ensure successful cybersecurity policy : What five actions are needed within an organization to ensure successful cybersecurity policy?
What is a stream cipher : 1) What is a stream cipher? 2) What are the different types of stream ciphers and how would they be described?
Create an effective memo : Create an effective memo, choosing all parties you want involved in the strategic planning committee.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd